AUGUSTA (AP) – Red ink continued to spill Thursday in the State House as state budget reviewers got a new report on plunging revenues and officials confirmed their belief that the shortfall for the current fiscal year will be just shy of $150 million.

Maine Revenue Services econometric research director Michael Allen told the Appropriations Committee that October general fund revenues were under budget by $8.1 million, or minus 3.2 percent. Half of the variance is due to lower than expected sales tax receipts, Allen said.

Restaurant and lodging sales in the state where tourism is a pillar of the economy were especially hard hit, decreasing by 5.8 percent and 12 percent respectively compared to the same month a year earlier.

“I don’t ever remember a month lodging sales have been down that much,” Allen told the committee.

All major revenue lines came in under budget or are expected to do so, including the all-important sales and use tax, which were nearly $4 million, or 4.1 percent, under budget for the month. Those taxes are under budget by $3.6 million, or 1.2 percent, so far this fiscal year.

“So the sales tax line continues to underperform, and based on national information I would suspect that it is going to continue to be like that over the coming months,” Allen told the committee. The October revenue figures represent money actually collected in September.

Allen’s bleak presentation came a day after Gov. John Baldacci ordered an $80 million curtailment of state spending, which is expected to have its greatest impact on the Education and Health and Human Services Departments, two of the state’s largest.

When Baldacci made his announcement, the revenue shortfall through the end of the fiscal year June 30 was estimated at $110 million to $150 million. But Allen told the Appropriations Committee on Thursday that his agency is recommending a reduction this fiscal year of $148 million.

The Revenue Forecasting Commission on Friday will consider that figure, and if it sticks, the Legislature must find another $70 million to address the shortfall when it takes up Baldacci’s budget revision package in December.

The barrage of bad news prompted one Appropriations member, Rep. Emily Cain, D-Orono, to ask Allen if he had a sliver of good news to offer.

“Gasoline was $1.99 at one station I saw last night,” Allen responded. “It’s one of the few bright spots.”

Earlier Thursday, House Majority Leader Hannah Pingree, who is expected to be elected speaker early next month, said everything is on the table as the newly elected Legislature prepares to deal with the shortfall. Asked by WCSH-TV if a tax increase is an option, the North Haven Democrat said this is not a time to look at new taxes.

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